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Project Background

A GICA product

Goals:

Comprehensive Information

Broad-based input

Starting Point

Governor’s 2010 Ag Forum Survey Results

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Agriculture Has Changed

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A Historical Perspective

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The Silicon Valley of the Food Industry: 1830s to 1950s

1889 – 37% of U.S. canning operations in MD

75 million consumers w/in 8 hour drive

Region was #1 tomato processor in country as late as 1950’s

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“Get Big or Get Out”

Infrastructure

Irrigation

Interstate Highway System

Subsidies

Efficiency

Consolidation

Cheap Energy

Cheap Labor

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The Context of Maryland Agriculture: Resilient Farmers, Tough Issues

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A Dynamic Economic Engine

High $ value/acre

Wealth Production $1.8 billion industry

$450 million in exports – 2009

#7 Broiler producer in U.S.

Employment and Related Industries

Resiliency Amidst Change

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Top Issues: Environmental Adaptation

Success in Implementing BMPs First CREP Program in Nation – 70,000 acres of buffers

Over 500,000 acres of cover crops this year (a record)

Sustainability as good business Limited, efficient fertilizer application

Conservation till to save fuel

Cover crops

Diversification to limit off-farm inputs

A Record of Voluntary Success

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Top Issues: Environmental Adaptation (con’t)

Achieving TMDLs

Will Require Support

Increasingly Expensive BMPs

Equity in Competition

Cost-Share and Technical Assistance

Capital Investments

Potential for New Regulations

Certainty in business

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Top Issues: Loss of Farmland

Sale for Development

Close proximity of new neighbors

Conflicts with Neighbors

Unrealistic Expectations

Higher Costs for Remaining Farmers

Disappearing Market

Land costs

Options for Manure

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Top Issues: Availability of Labor

H2A Visa program

Burdensome

Expensive

Not used by all

Workforce Housing

Used differentially than residential house, same requirements

Unrelated persons living together

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Top Issues: Energy Costs

Energy intensive operations

From Solar Energy to Petroleum

Energy

Rising energy costs

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Top Issues: Problems with Wildlife

Exploding populations of Deer and Geese

Suburban refuges

Non-native species

Crop Damage

$10 million in 2009

20% of vineyard grapes

large amounts of corn

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Top Issues: Problems with Wildlife (con’t)

Environmental Degradation Nutrient transfer from

field to waterway

De-vegetation of habitat

Unhealthy population sizes Disease

Starvation

Bacteria

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Top Issues: Commodity Pricing

Farmers as price takers Declining share of food

dollar $.20 today, as compared to

$.41 in 1950

Regulated prices and pricing programs

Price volatility Futures markets

Alternate uses

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Top Issues: Commodity Pricing (con’t)

Unpredictable input costs in Animal Agriculture

Futures markets

Demand from developing countries

Biofuel arrangements

Subsidy arrangements

How commodity pricing issues have been addressed:

Govt programs

Borrowing

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Maryland’s Lost Ag Sectors

Tobacco

Historical significance

1930s – Price supports and production quotas

Health problems

State buyout program

Swine

Unpleasant smells, dust in a suburbanizing State

Hurt by local ordinances

Largely left the State

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Maryland’s Endangered Ag Sectors

Horse Farms Historical significance: As racing goes, horse farms go

Horse racing in decline in MD Off-track betting

Competition from other

gambling venues

Dairy Farms Price volatility

Industry consolidation

521 farms remain of the 1,432 that existed in 1990 ( 64%)

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Source: Dr. Howard Leathers, University of Maryland

Staying in Business: Farmer Responses to Changes

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Staying in Business: Diversification

Agritourism Hay rides, corn mazes, petting zoos, events

Balancing w/ community preferences

Winemaking 42 wineries in 15 counties, 13 under development

A learning curve for growers, communities Zoning as agriculture

Regulating wine tasting events and foods served in tasting rooms

Use of processing byproducts

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Staying in Business: Diversification (con’t)

Organic production Premium prices

Retooling of operations, equipment, land usage

MDA certification

Niche Production Jams, honey, syrup, crafts, etc.

Can require changes to

infrastructure

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Staying in Business: On-Farm Processing

Adding value to gain control over pricing

Raw products into consumer-ready foods

Share of food dollar

Butchering, cleaning, cooking, packaging, grinding, smoking, preserving, spinning, etc.

Accessing new markets created by development

A return to the past

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Staying in Business: Direct Marketing

Food dollars and market share

Direct to Consumer Farmer’s Markets

On-farm sales

CSAs

Direct to Retail Sales to grocers

Sales to restaurants

Farm to School

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Staying in Business: Second Jobs & Ag Services

Second Jobs

Support a farming habit

Widespread reality

Providing Agricultural Services

An extensive skill set

Equipment repair, welding, carpentry, husbandry, plowing, harvesting, “farm-sitting”

Marketing skills that are unique to agriculture

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Staying in Business: Controlling Energy Costs

Limiting Energy Usage Conservation tillage Limiting outside inputs

Seeking Alternate Sources Anaerobic Digestion Chicken litter as a heating fuel Wind

Logistics Transport & Storage Community Acceptance

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Going Out of Business: Sale of Land

Business viability

Generational interest

Debt settlement Leveraged farms

Estate tax

Nearly ½ of farmland removed from production since 1970

Vacant developments

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Tools for Problem Solving

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Tools: Conserving Natural Resources

Understanding the environmental context

Environmental problems, actions, regulations

Pace and type of development

Factors for smart land and wildlife management

Smart planning

Access to infrastructure

Comprehensive planning & development

Supportive zoning, infill development

Characteristic-based land development

Modeling & developing around existing natural and built features

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Tools: Preserving Farmland

Existing programs Program Open Space

Rural Legacy Program

Maryland Environmental Trust

MALPF

MALPF Production agriculture

Implemented locally: Agricultural Preservation Districts

Purchases development rights

Coordination: Funding and flexibility

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Tools: Ensuring Equity in Competition

Environmental Regulation

Avoid competitive disadvantages

Recognize voluntary efforts

Farmers as partners

TMDL funding support

Local Regulation

Clarity in intent

Dialogue

Understand implications

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Tools: Managing Wildlife

Avoid creating wildlife refuges Examine publicly-owned lands

Retention ponds Large expanses of mowed grass Fenced-in areas

Develop county-wide plans Encourage the hunting of antler-less deer Egg addling, controlled hunts Promote wildlife management permits Promote QDMAs

DNR can help

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Tools: Supporting Value-Added Operations

Seeing farmers as entrepreneurs Small businesses and community reinvestment Tax base and employment

Small business development support Roles, processes, timelines Agricultural marketing specialists

State agency Ombudsmen Guidance Regulatory interpretation

Potential for growth A community decision

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Tools: Supporting Value-Added Operations (con’t)

Facilities and logistical considerations Zoning and local law

Consider revising definitions

Facilities Processing facilities – DHMH, MDA, or USDA

Wastewater discharge Soil amendment to Nutrient Management Plan

MDE wastewater permits program

Composting MDE may require a permit

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Tools: Ensuring Food Safety

Existing regulatory complexities MDA DHMH USDA-FSIS USDA-APHIS FDA local govts

MDA & DHMH accommodation of on-farm processing and direct marketing Training and oversight Changing requirements

When in doubt, contact agency Ombudsperson

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Tools: Avoiding & Responding to Land Use Conflicts

Close proximity & new resident expectations

Realtor disclosure

Informed home purchases

Similar to airport disclosure

Reverse setbacks

Buffer zone incorporated into development

Natural barriers

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Tools: Avoiding & Responding to Land Use Conflicts (con’t)

Mediation Mediate, don’t Litigate: Private citizen disputes Neutral, trained 3rd party Reasoned solutions to conflict Required by State law

Facilitated Meetings Negotiate, don’t Ventilate: Public land-use decisions Neutral, trained 3rd party Collaborative development of informed policies

MD-ACReS

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Tools: Avoiding & Responding to Land Use Conflicts (con’t)

Right to Farm Laws Definitions may not address value-added operations Establishing and funding a local Reconciliation Board

Comprehensive Updates Zoning law Agriculture law

State law Legal compliance and established operations are not

nuisances Mediation prior to litigation

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Tools: Recognizing the Importance of MD Ag

Economic Importance Ability to compete

Consumer demand for local foods Food miles

Food security Food deserts

Health Freshness

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Tools: Spreading the Word

Outreach Runs in both directions

Farm tours/listening sessions Govt informational sessions

Education In schools To the public

MAEF Ag tag

GICA Toolkit

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GICA Toolkit: Next Steps

Provide Feedback

Editing

GICA Approval

Distribution

Marketing

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